Small Businesses Face Unprecedented Payment Fraud Concerns Amid Economic Challenges: KeyBank Survey Reveals Top Strategies for Protection

According to a recent survey conducted by KeyBank, payment fraud is becoming an increasingly significant concern for small businesses. The survey included nearly 2,000 small-to-medium size businesses with annual revenue of less than $10 million. Payment fraud was the top concern among participants, with various types of fraud including unauthorized transactions, identity theft, malware and ransomware attacks, and phishing and email scams being cited as major concerns.

The survey also revealed the top three anticipated economic challenges for small businesses in the coming months. High overhead costs were identified as the most significant challenge, followed by delayed payments from clients or customers and fluctuating revenue. Despite these challenges, 65% of respondents stated they could fund their operating expenses for one month with their cash reserves in case of unexpected needs. This resilience among small business owners reflects their ability to navigate through financial uncertainties and remain on track for economic growth.

Mike Walters, President of Business Banking at KeyBank, emphasized the importance of having a plan in place to combat fraud. He noted that small business owners must take proactive measures to protect their finances from fraudulent activities.

To address this issue, Walters recommended several steps that small business owners can take to prevent payment fraud. Firstly, it is crucial to have robust security systems in place that include firewalls and antivirus software to protect against malware and ransomware attacks. Secondly, regular employee training should be provided on how to identify phishing scams and avoid falling victim to them.

Lastly, Walters advised businesses to monitor their bank statements regularly for any suspicious activity or unauthorized transactions. Small businesses should also establish clear policies on who has access to company funds and implement multi-factor authentication when making payments or transferring funds.

In conclusion, payment fraud is a growing concern among small businesses. However, with proper planning and proactive measures in place, small business owners can mitigate these risks and protect their finances from fraudulent activities.